Looks like the factory width between the axels should be 1 1/8". Maybe one of the axels is still just a little too long and touching inside of the posi and causing an issue? I am grasping at straws.

Maybe I will get my bar today and see if it is straight.

To measure correctly you will need to put a loaded center section into your housing. Run a tape down your tubes and hook it on the inside of the side gear. Measure to the lip in your housing end that the axle brg seats against.

Then you can measure your axle from the tip to the inside of the axle brg.